Ex-pack IPO opens today, billed to exceed expectations
- Funds raised to go towards Rs. 3 b production facility
Ex-pack Corrugated Cartons Ltd.’s Rs. 700 million IPO is scheduled to be open for subscriptions today (22).
Managed jointly by Capital Alliance and Asia Securities, 83,333,333 ordinary voting shares (a 25% stake) at a price of Rs. 8.40 per share are on offer, resulting in a projected market capitalisation of Rs. 2.8 billion. This translates into an estimated forward price earnings ratio (PER) of 7.7x for FY22 and implied TTM PER (as of August 2021) of 8.9x.
The company noted that funds raised by the IPO will go towards a Rs. 3 billion ultramodern production facility, which is expected to raise monthly volumes from 2,650 metric tonnes (MT) currently, to 4,000 MT by 2025.
Ex-pack has spent over two decades in the packaging industry while acquiring an extensive clientele, comprising corporates and brands from over eight countries. In Sri Lanka, Ex-pack leads in production and exports, which accounts for 52% of revenue being generated in US dollars.
The company’s product portfolio includes regular slotted cartons, die-cut cartons, laminated cartons, and a host of specialised products developed using recycled material. Ex-pack also worked with the Department of Elections of Sri Lanka in transforming ballot boxes by crafting them out of corrugated cartons during the 2020 general election. The company serves top corporate customers and sectors worldwide, including FMCG, consumer durables, apparel, tea, and fisheries.